CO-OPERATIVE HOUSING SOCIETY 1 BCCA INSTITUE OF MANAGEMENT STUDIES MAZAGAON, MUMBAI-400 010 SEMESTER: IV (FOURTH) THE GROUP NUMBER: CLASS: S. Y. B. M. S DIV: B SUBJECT: CO-OPERATIVE AND RURAL MARKETING TOPIC: HOUSING CO-OPERATIVE SOCIETY NAME OF THE PROFESSOR: PROF. KHADIJA RONAK SIGNITURE OF PRFESSOR MARKS OBTAIN MARKS OUT OF B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 2 “ALL PROGRESS IS BORN OF INQUIRY” —– HUDSON MAXIMA B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 3 PREPARED BY: NAME ? SIDIQUE FARIDI ? NATHIA MOHOMAD ALI ? ANSARI IRSHAN ? ATHANIA MOHOMAD YUNUS ? SHIEKH ALTAMASH ? ANSARI SALMAN ? ANSARI TEHSIN ? VEHVARIA FARAZ ? SHIEKH MISBAH ? NEHA KONDKARY ROLL NO 65 79 84 85 86 87 88 98 100 101 SIGNATURE B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 4 PREFACE
It is essential to learn about co-operative society for management students to know how to deal with the society when you are dealing in business with the people living in society to make our business success full we need to know about every area in which the business operate. Our thanks to respected Teacher Prof. KHADIJA RONAK the Lecturer of COOPERATIVE AND RURAL MARKETING at BCCA’s Institute of Management Studies, who provided us an opportunity to study the depth of this procedure and registration of cooperative society by giving it for project work.
We tried to cover all the areas of the subject by visiting to a co-operative housing society. Also we have taken care to condense the text with basics and essentialities in a simple and lucid form to make the readers comfortable in grasping the fact and figures. We wish to profoundly thank our teacher Prof. KHADIA RONAK whose precious teachings made it possible to prepare such type of project. WARM REGARDS, AUTHORS B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 5 CONTENTS ) Executive summary 2) Definition 3) Introduction to housing cooperative 4) Housing situation in India 5) Housing shortage a real problem 6) Structure of housing cooperative 7) Bye laws of cooperative 8) Approach to housing development 9) Housing and urban development 10) Type of cooperative housing society 11) National housing and habitat policy1998 12) Future prospective of national housing policy 13) Problem of housing policy 14) Procedure of registration 15) Right and duties of members 16) Property and fund of cooperative 17) Procedure of issue of winding of cooperative 18) Interview of Chairman 19) Case study 11) Bibliography 7 8-10 11-13 14-15 16-17 18 19-20 21-22 23 24-26 27-29 30-31 32-38 39-43 44-48 49-55 56 57 58-59 B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 6 EXECUTIVE SUMMERY A housing cooperative is a legal entity usually a corporation that owns real estate, consisting of one or more residential buildings. Each shareholder in the legal entity is granted the right to occupy one housing unit, sometimes subject to an occupancy agreement, which is similar to a lease.
The occupancy agreement specifies the co operative‘s rules. Cooperative is also used to describe a non-share capital co-op model in which fee-paying members obtain the right to occupy a bedroom and share the communal resources of a house that is owned by a cooperative organization. Housing cooperatives in India Co-ops are more commonly known as “flats” in India. This type of housing is very common in big cities like Mumbai (Bombay) but not very popular in rural India.
Actually, they are registered as “co-operative housing society” rather than condominiums in that the owners actually have a share of the co-op and not the actual real estate itself. Owners can sell the “share” in the open market, but they have to get the approval of the co-op to complete the transaction. It is owned and managed by the members of the co-operative. Most housing cooperatives are fully mutual and further reference to housing co-operatives in this document refer to this type, where only tenants or prospective tenants may be members, and only members may hold a tenancy.
This means that decisions are made by the people who are affected by those decisions. Housing co-operatives provide a way for people to share in the ownership of property and live in it at affordable rent levels, as opposed to rent levels designed to generate profit for an individual or company. They are an alternative to home ownership in the traditional sense or renting in the private sector. B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 7 DEFINATION THE DEFINATION OF CO-OPEARATION:
According to Ho Calvert Co-operation mean: “Cooperation is a form of organization in which persons voluntarily associate together as human beings on the basis of equality for the promotion of economic interest of themselves”. THE DEFINATION OF CO-OPEARATIVE: Co-operative society is defined as: ? A union of persons established according to the principles of equality, the purpose is to improve the financial position of its members by joint performance, provided that all profits made, aims to distribute among members and not in proportionate to investment? THE DEFINATION OF CO-OPEARATIVE HOUSING SOCIETY:
According to Maharashtra Act of Housing Society Act 1960, a housing society is defined as “A society, the object of which is to provide its members with open plots, dwelling houses or flats and to provide common amenities and services” B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 8 INTRODUCTION TO CO-OPERATIVE HOUSING SOCIETY The prime necessities of human beings are food, clothing and shelter and housing cooperative is an essential for human existence as much food and clothing. Housing is a significant subject having a concern with a common man.
One of the important problems faced by India is the housing problem. The reasons are varied, like tremendous growth in population, migration from rural to urban areas. Highly speculative trend in the cost of land, weakening of joint family system thus creating a requirement of a separate house for each family unit etc. Co-operative housing emerged as a strong, well organized and significant in order to. Solve the housing problem of common man. These are legally established association of persons and are democratically controlled by the members.
The working group on housing co-operatives has therefore said that, ? cooperative activity is the best means of providing decent houses at reasonable costs to persons, particularly of low and middle income groups. ‘‘ Mumbai is the 3rd largest density populated city in the world and the prices of the land and construction is becoming unaffordable to the common man. They also B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 9 say that man is a social animal and is incomplete without a social fabric.
A person‘s lifestyle, his culture, his social status all are determined on where he stays. There is a acute shortage of cheap & good houses. Growth in urban area is 4. 2% as against is 1. 5 to 1. 6% in Europe. Also in Bombay around 62% people live in slums or without shelter. The rate of construction of new houses is around 1 house per 1000 people, while the Ideal is 10 houses. Therefore there is a chronic shortage of houses in India. Therefore ? co-operative activity is the best means of providing decent houses at reasonable cost to persons, particularly of low & middle income groups.
LEGAL STATUS: As a legal entity, co-operatives can contract with other companies or hire individuals to provide it with services, such as a maintenance contractor or a building manager. It can also hire employees, such as a manager or a caretaker, to deal with specific things that volunteers may prefer not to do or may not be good at doing, such as electrical maintenance. However, as many housing cooperatives strive to run selfsufficiently, as much work as possible is completed by its members.
A shareholder in a co-op does not own real estate, but a share of the legal entity that does own real estate. Co-operative ownership is quite distinct from condominiums where people “own” individual units and have little say in who moves into the other units Because of this, most jurisdictions have developed separate legislation, similar to laws that regulate companies, to regulate how co-ops are operated and the rights and obligations of shareholders. OWNERSHIP: Each resident or resident household has membership in the co-operative association.
Members have occupancy rights to a specific suite within the housing co-operative as outlined in their “occupancy agreement” or “proprietary lease” which is essentially a lease. In some cases, the co-op follows Rochdale Principles where each shareholder has only one vote. Most cooperatives are incorporated as limited stock companies where the number of votes an owner has is tied to the number of shares owned by the person. Whichever form of voting is employed it is necessary to conduct an election among shareholders to determine who will represent them on the board of directors (if one exists), he governing body of the co-operative. The board of directors is generally responsible for the business decisions including the financial requirements and sustainability of the co-operative. Although politics vary from co-op to co-op and depend largely on the wishes of its members, it is a general rule that a majority vote of the board is necessary to make business decisions. MANAGEMENT: In larger co-ops, members of a co-op typically elect a board of directors from amongst the shareholders at a general meeting, usually the annual general meeting.
In smaller co-ops, all members sit on the board. B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 10 The board typically elects its own officers, such as a president, vice-president and so on. Usually, the directors are volunteers, or are paid an honorarium. The board may then establish standing committees from among the shareholders, who usually also volunteer their time, to either handle the business affairs of the co-op or make recommendations to the full board on such issues as its finance, membership and maintenance of its housing units.
FINANCE: A housing cooperative is normally de facto ? non-profit”, since usually most of its income comes from the rents paid by its residents, who are invariably its members. There is no point in creating a deliberate surplus except for operational requirements such as setting aside funds for replacement of assets since that simply means that the rents paid by members are set higher than the expenses. Note, however, that it’s quite possible for a housing co-op to own other revenue-generating assets, such as a subsidiary business which could produce surplus income to offset the cost of the housing, but in those cases the housing rents are usually reduced to compensate for the additional revenue. ) It is relatively difficult to start a housing co-op because if the idea is, for instance, to build a building or group of buildings to house the members, this usually takes a significant mortgage loan for which a financial institution will want assurances of responsibility.
It may also take a year or more for the members to organize the design and construction, as well as time and foresight to establish even basic organizational policies. It is rare that these kinds of skills of organization are available in a random group of people who often have pressures on their existing housing. It may be somewhat easier to organize a group of closely related housing units. This opportunity may arise, for example, if an existing apartment building’s owner is thinking about selling it.
MARKET-RATE AND LIMITED-EQUITY CO-OPS: There are two main types of housing co-operative financing methods, market rate and limited equity. With market rate, the share price is allowed to rise on the open market and shareholders may sell at whatever price the market will bear when they want to move out. In many ways market rate is thus similar financially to owning a condominium, with the difference being that often the co-op may carry a mortgage, resulting in a much higher monthly fee paid to the co-op than would be so in a condominium.
The purchase price of a comparable unit in the co-op is typically much lower, however. With limited equity, the co-op has rules regarding pricing of shares when sold. The idea behind limited equity is to maintain affordable housing. A sub-set of the limited equity model is the no-equity model, which looks very much like renting, with a very low purchase price (comparable to a rental security deposit) and a monthly fee in lieu of rent. When selling, all that is re-coped is that very low purchase price. B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 1 Housing Situation in India According to the last census conducted in India in 1991, the country had a population of 846. 3 million out of which 217. 6 million lived in cities and towns. The total number of households was estimated at 153. 2 million for the same year. As against this figure, the housing stock in the country was of the order of 148 million – 39. 3 million units in urban areas (26. 6%) and 108. 7 million in rural areas (73. 4%). During the period 1971-1991, while the number of households increased by 58%, the number of housing units went up by about 59%.
Although India has been facing the problem of housing shortage for a long time, the increase in housing stock in recent decades has been more than that in the number of households. Table 1 portrays some salient data regarding the housing situation in India at the 1991 Census. Approximately 40% of households in 1991 were in single room tenaments; about 30% lived in two-room units. Only about 15% of households had four or more rooms. Table 2 shows the percentage break-up of households by the number of rooms occupied.
Housing Situation in India: 1971, 1981 & 1991 1971 Population & Households: Total Population (Million) Rural Population (Million) Urban Population (Million) Slum Population (Million) Total Households (Million) Rural Households (Million) Urban Households (Million) Household Size: Total Household Size: Rural Household Size: Urban Households per Dwelling Persons per Dwelling Housing Units (Million): Housing Stock: Total Housing Stock: Rural Housing Stock Urban Housing Shortage: Total Housing Shortage: Rural Housing Shortage: Urban 548. 20 439. 10 109. 10 97. 0 78. 00 19. 10 5. 65 5. 63 5. 71 1. 04 5. 89 93. 00 74. 50 18. 50 14. 60 11. 60 3. 00 1981 683. 30 523. 80 159. 50 27. 91 123. 40 94. 10 29. 30 5. 54 5. 57 5. 44 1. 06 5. 86 116. 70 88. 70 28. 00 23. 30 16. 30 7. 00 1991 846. 30 628. 70 217. 60 46. 73 153. 20 112. 50 40. 70 5. 52 5. 59 5. 35 1. 03 5. 72 148. 00 108. 70 39. 30 23. 90 14. 67 8. 23 B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 12 Distribution of Households by Number of Rooms Occupied (Percent) One Room: Rural Urban Two Rooms: 28. 5 28. 9 30. 6 Rural 27. 0 27. 8 30. Urban Three Rooms: 12. 1 12. 3 13. 5 Rural 11. 4 12. 2 14. 8 Urban Four or More Rooms: 12. 0 12. 1 14. 0 Rural 11. 4 12. 1 14. 7 Urban No Exclusive Room and Unspecified Rooms Rural 0. 1 2. 4 1. 1 Urban 0. 2 2. 1 0. 5 Source: Government of India – National Buildings Organization, Ministry of Urban Affairs & Employment: Prominent Facts on Housing 1997. 1971 47. 3 50. 0 1981 44. 3 45. 8 1991 40. 8 39. 6 At the 1991 Census, more than 95% of the households living in rural areas had buildings of their own whereas the figure for urban areas was much lower – at 63. %. However, over the period 1971-91 though the percentage of households owning buildings rose in both rural and urban areas, the rise in case of the latter was impressive – the figure going up from 47. 1% in 1971 to 63. 1% in 1991. In addition to improvement in ownership status, there has also been a steady upward trend in the quality of housing units in the country. During the decade 1981-91, the number of pucca (permanent) housing units increased by 64. 64%, which is much higher than the growth of 53. 39% occurring during the decade 1971-81.
Over the period 198191, the number of semi-pucca houses declined by about 8% (from 6. 80 million in 1981 to 6. 23 million in 1991), while the number of kutcha (thatched, huts, etc. ) houses showed only a marginal increase of about 6% (from 3. 1 million in 1981 to 3. 2 million in 1991). Table 3 provides some important information regarding the housing conditions in the country. Insofar as the provision of civic amenities is concerned, there have been considerable improvements in the access of people to such amenities over the years although shortages in housing and infrastructure do continue.
Table 4 shows the percentage of households in the country as a whole having access to safe drinking water, toilet facilities and supply of electricity during the decade 1981-1991. B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 13 Housing Conditions in India: 1971, 1981 & 1991 1971 Tenure Status of Households Owned: Rural Urban Rented: Rural Urban Type of Structure (%) Pucca: Rural Urban Semi Pucca: Rural Urban Kutcha: (Serviceable): Rural Urban Kutcha: (Unserviceable): Rural Urban 93. 8 47. 1 6. 2 52. 9 1981 93. 0 53. 5 7. 0 46. 5 1991 94. 5 63. 1 5. 5 36. 19. 0 63. 8 37. 0 23. 5 32. 0 12. 7 21. 1 64. 6 37. 6 24. 3 29. 0 11. 1 33. 0 75. 8 34. 2 15. 8 22. 8 8. 4 12. 0 – 12. 3 – 10. 0 – Access of Households to Basic Amenities: 1981-1991 1981 Households having Safe Drinking Water Households having Toilet Facility 74. 14% 1991 81. 59% 57. 4% 63. 58% Households with Electricity 61. 6% 75. 93% Source: Government of India – National Buildings Organization, Ministry of Urban Affairs & Employment: Prominent Facts on Housing 1997 B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 14 HOUSING SHORTAGE THE REAL PROBLEM
Housing shortage is estimated in terms of excess households over houses including houseless households, congestion (number of married couples requiring separate room/house), replacement/up gradation of kutcha/unserviceable kutcha houses and obsolescence/replacement of old houses. Table 5 shows the components of housing shortage in the country at the beginning of 1991. Table 6 shows the estimates of housing shortage in urban areas based on the Report of the Ninth Plan Working Group of the Government of India, Ministry of Urban Affairs & Employment Components of Housing Shortage: 1991 (Million Units) TOTAL
RURAL Urban Excess of Households over Houses including Houseless Households Congestion (No. of Married couples requiring separate Room/House) Replacement/Up gradation of Kutcha/Unserviceable Kutcha Houses Obsolescence/Replaceme nt of Old Houses Total 5. 16 3. 76 1. 40 1. 91 – 1. 91 14. 20 10. 91 3. 29 1. 63 22. 90 14. 67 1. 63 8. 63 Source: Government of India – National Buildings Organization, Ministry of Urban Affairs & Employment: Prominent Facts on Housing 1997 B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 15
PROJECTED HOUSING SHORTAGE IN INDIA’S URBAN AREAS, 1997-2001 Million Units Item PUCCA Semi-pucca Kutcha Households (No. ) Housing Shortage 1997 40. 08 6. 65 3. 35 50. 09 1998 42. 13 6. 73 3. 38 51. 85 1999 44. 29 6. 81 3. 40 53. 68 2000 46. 56 6. 88 3. 43 55. 56 2001 48. 94 6. 97 3. 45 57. 52 7. 57 7. 36 7. 18 6. 93 Note: The housing shortage estimates also account for congestion and obsolescence of existing units Source: Ministry of Urban Affairs & Employment 1996. Report of the Working Group on Urban Housing for the Ninth Five-year Plan.
Government of India, Delhi. India‘s National Report for Habitat II Conference in Istanbul estimates that by 2021, the country would face a housing shortage of 44. 9 million units and that the investment required for tackling this shortage over a period of 25 years at 1991 prices would be of the order of Rs. 6580 billion. The Ninth Plan Working Group of the Government of India, Ministry of Urban Affairs & Employment estimated the new th housing/old housing up gradation requirement at 16. 76 million units for the 9 plan period (1997-2002).
About 70% of the units are estimated to be required for the urban poor/economically weaker sections of society while about 20% is for lowincome groups. About 10% of the urban requirement is for addressing the middle and higher income group segments. It is estimated that for urban housing alone, the total requirement of investment would be of the order of Rs. 1213. 7 billion for 19972002 to address the housing shortage of 7. 57 million, up gradation of 0. 32 million semi-pucca Economically Weaker Sections (EWS) units and the additional construction of 8. 67 million units.
The total requirement of funds for urban and rural housing put together for 1997-2002 was estimated to be of the order of Rs. 1500 billion (see Table 7). Against this amount, about Rs. 520 billion is likely to be available if the past trends of housing finance are assumed to continue. Investment Requirement for Housing: Ninth Five Year Plan (1997-2002) Segment No of Units to be Constructed (Million) 162. 5 176. 6 330. 1 Fund Requirement (Rs. Billion) 290 1,214 1,504 Likely Availability Rural Urban Total 180 340 520 B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 16 Structure of housing cooperative First level: National cooperative At the apex of the structure is the National cooperative housing society‘s federation (NCHF) which was established in 1969 and has headquarters in New Delhi. The objectives of this institution are:- 1) Give publicity of cooperation housing movements by publishing books and brochures. 2) To establish financial institutions at state level (Maharashtra Housing Finance Corporation) 3) To help the primary housing cooperative to get loans for building houses and flats at very nominal interest rate. 4) To undertake research for new building material so to reduce the construction cost. Second level: State level housing cooperative Their main objective is to guide primary housing cooperatives regarding legal and statutory matters so as to get that registered. They also help in negotiating with institution like MHADA for allotment of plots. # Third level: Primary housing cooperative The objectives are found in rural, semi urban and urban areas and can get themselves registered if they have ten or more members who have a fix source of income and who come together to build a housing cooperatives and solve the housing problems and prevent exploitation of Land lords.
They provide a systematic and organized way of maintaining the building and property of housing cooperatives. The basic guidelines for the formation of Co-operative society in Maharashtra State are as follows:- ? There should be at least ten persons or more as the Registrar may determine from time to time. B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 17 ? These persons should be from different families. ? These persons should be competent to enter into a contract under the Indian contracts Act 1872. He should reside in the area of operation of the Society. ? He should be eligible as per the bye-laws of the proposed Society. ? Any individual, firm, company or any other body corporate can become member of the Society. ? Any Society registered under this Act or Societies registration Act 1860 ? State & Central Government, Public Trust, local authority. ? The object of the Society should be promotion of economic interests or general welfare of the members or the public, in accordance with the co-operative principles. It should be economically sound, its registration should not affect adversely on the development of the co-operative movement. B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 18 Bye-laws of the Co-operatives Co-operation is an activity of the people. It is a self-generated, voluntary and self-sufficient activity. Hence little governmental interference is desirable. However considering the economic parameters of this movement and interests of several persons involved there is a possibility of misuse of personal power by any of the group-members.
The governments therefore had to pass legislation to monitor the activities of the co-operatives mainly with the purpose of safeguarding the interests of all the members. Great Britain for example had passed legislation as early as 1852. Similar intervention of legislature can be seen in Germany and France (1867) and Italy (1883). In Maharashtra the Co-operatives are governed by the Maharashtra Cooperative Societies Act 1960 and supported by Maharashtra Co-operative Societies Rules, 1961. The legal system in the co-operatives registered in Maharashtra State is elaborate.
Moreover each co-operative should have its own Bye-Laws which are the guiding principles of the co-operative. These Bye-laws have to be approved through a resolution of the Society. These bye-laws can be amended in the General body Meeting of the co-operative. The only condition on the bye-laws is that they should not be contrary to the Maharashtra Co-operative Societies Act, and have to be approved by the Registrar. Requirements for forming a cooperative society ? Minimum number of persons 25. ? The society’s object should be promotion of the economic interests of its members. The proposed society should be capable of being run on economically sound lines. ? The registration of the proposed society should not have an adverse effect on the cooperative movement. B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 19 APPROACH TO HOUSING DEVELOPMENT After independence, housing was accorded a relatively low priority in the national development programme in India, presumably with the objective of keeping it basically a private sector activity. The low budgetary support given to the housing sector is evident from the fact that the First Five Year Plan of India allocated 7. % of the total plan resources for housing; the share of housing in the subsequent plan resources ranged between 1. 2% and 4. 9%. The governmental agencies, however, played a strong supporting role for the provision of housing for the poorer sections of society, including allocation of land. Over the years there has been a gradual shift in the role of the Government from a ? provider‘ to a ? facilitator‘, ensuring access to developed land, basic services, building materials, technology, construction skills and finance so that housing can be undertaken as a people’s programme.
The facilitating approach aims at fostering strong public-private partnerships with the provision of appropriate incentives to the private sector, promotion of housing finance institutions, propagation of alternate building materials and technologies and extension of support to NGOs, CBOs, co-operatives and the private sector. The Government of India and State Governments have adopted a two-pronged approach to housing development for the poor in the past, i. e. , sites and services and permanent housing.
Under sites and services, basic infrastructure facilities like drinking water, internal roads, approach roads, drainage, community toilet, etc. , were provided to develop layouts. The beneficiaries were also given construction assistance for erecting a small shelter. The permanent housing programme, which has replaced sites and services, was initially confined to those beneficiaries who could avail loan facility. Later, several modifications have come up in the programme to address the housing needs of different target groups.
The broad elements of the approach of the Government of India to tackle the problem of housing the poor are: special programmes/targeted subsidy to the poor and vulnerable groups, loan assistance to governmental agencies/beneficiaries at below-market interest rate for housing and at normal rate for infrastructure through the Housing and Urban Development Corporation (HUDCO), creation of housing assets as part of employment and income generation programmes, promotion of cost-effective and eco-friendly building materials and technologies and creation of an enabling environment for private sector initiative.
Indira Awas Yojana (IAY) is an example of housing for targeted groups in rural areas through employment creation. B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 20 Indira Awaas Yojana (IAY): Indira Awas Yojana (IAY) intends to assist certain vulnerable target groups in housing activities.
The programme applies to categories such as Scheduled Caste (SC)/Scheduled Tribe (ST) households who are victims of social atrocities, SC/ST households headed by widows and unmarried women, SC/ST households affected by flood, fire accident, earthquake, cyclone and similar natural calamities, freed bonded labourers, families/widows of personnel from defence services/para-military forces killed in action, ex-servicemen and retired members of para-military forces, persons displaced on account of developmental projects, nomadic, semi-nomadic and de-notified tribals and families with disabled members, subject to the conditions that these households belong to below poverty line category.
As per the Government of India guidelines, IAY houses are being allotted in the name of the female member of family or alternatively in the joint name of both wife and husband. The programme is fully subsidised by the Government of India. B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 21 HOUSING AND URBAN DEVELOPMENT CORPORATION The Housing and Urban Development Corporation (HUDCO) was established as a fully-owned enterprise of the Government of India in 1970 with an equity base of Rs. 20 million to function as a national techno-financial institution to promote housing and urban development. The objectives of HUDCO include the following: ? To finance and undertake housing and urban development programmes in urban and rural areas; ?
To finance and undertake either wholly or partly, the setting up of new towns or satellite towns covering infrastructure needs in urban and rural areas; ? To finance and undertake the setting up of building material industries; ? To provide consultancy services for projects of housing and urban development within the country and abroad. At present HUDCO has an authorized capital base of Rs. 12. 50 billion ($297 million), paid-up equity of Rs. 8. 98 billion ($213 million), reserve of Rs. 5. 75 billion ($136 million) and net worth of Rs. 14. 83 billion ($349 million). The total borrowings by HUDCO stand at Rs. 121. 68 billion ($2897 million). Thus the debt-equity ratio of HUDCO works out to 7. 77. The key activities of HUDCO include: ?
Lending for housing programmes through various schemes such as urban housing, rural housing, staff rental housing, cooperative housing, working women’s housing, housing schemes through NGOs and CBOs and housing through private builders; ? Lending for urban infrastructure, including land acquisition for projects, integrated land acquisition and development, city level infrastructure – water supply (rehabilitation, augmentation, new source development/transmission projects), sanitation (rehabilitation, augmentation, new sewerage and drainage projects, conversion of dry latrines, construction of individual and community toilets), solid waste management (collection, conveyance, treatment and disposal, energy recovery), transportation (roads, bridges, rail and road transport terminals, airports, ports), etc. social infrastructure (health, education, parks, playgrounds), commercial infrastructure (shopping centres, commercial complexes, office complexes), and integrated area development/new township projects, etc. ; ? Consultancy services in the field of housing, township development and infrastructure development; ? Promotion of Building Centers for technology transfer and support to building material industries; and ? Training in human settlements and technical assistance to borrowing agencies. B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 22 THE BORROWERS OF HUDCO ARE: State Urban Infrastructure Finance and Development Corporations, Water Supply and Sewerage Boards, Urban
Development Authorities, State Housing Boards, National Capital Region Planning Board (NCRPB), New Town Development Agencies like City and Industrial Development Corporation (CIDCO), Mumbai, Municipal Corporations/Municipalities, Improvement Trusts, and private companies and agencies. Since its inception, HUDCO has so far sanctioned 14821 projects with a project cost of Rs. 48. 51 billion ($11. 54 billion). The amount of loan sanctioned is Rs. 31. 66 billion ($7. 53 billion) against which Rs. 17. 82 billion ($4. 24 billion) is already released. Housing loans approved amount to Rs. 19. 42 billion ($4. 6 billion) against which Rs. 12. 30 billion ($2. 9 billion) has been disbursed. HUDCO has so far contributed to the development of 10. 14 million dwelling units and 4. 7 million low-cost sanitation units.
HUDCO‘s infrastructure financing portfolio is growing at a phenomenal rate. During the last 10 years HUDCO has sanctioned Rs. 12. 24 billion ($2. 9 billion) for infrastructure projects covering water supply, sewerage, drainage, solid waste management, low cost sanitation, etc. HUDCO‘s operations extend over 1,760 towns and thousands of villages in the country. B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 23 Types of Co-operative Housing Society ? Tenant Ownership: Tenant ownership is a kind of ownership in which the land is owned by the society, flats or owned by the members, subletting or transfer of flats are not allowed.
Any renovation which takes place in the house need not required permission from the society reason is the ownership of the house is in the hand of the tenant the society has no option to take any action against the tenant ? Tenant co-partnership: Land & flats are owned by the society and members pay rent. In such a case the society has a right to take any action against the tenant reason so that this property ownership lie in the hand of the society and any changes done in it required permission. If the permission is not granted then the person cannot do any changes if the rule are broken the tenant is liable for the action against him by the society ? Flat Ownership co-ops:
Flat owners jointly own the land this is the case where the flat ownership lie in hand jointly between the society and the owner there all the action are done as per the regulation under the co operative act. And the deed which is prepared at the registration of co-operative any change have to be reported in the letter form to the co operative register office any delay or not sending of such intimation can deal with the action against the person liable for or the society. B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 24 NATIONAL HOUSING AND HABITAT POLICY 1998 In 1994, India adopted the National Housing Policy (NHP), which recognizes the key role of the Government as facilitator rather than provider of housing services. The National Housing & Habitat Policy-1988 (NH&HP) is a continuation of the NHP.
It calls for a housing revolution in the country and focuses on the changed roles of various stakeholders in the housing development process in the new economic environment of liberalization and globalization. The policy emphasizes the need to persuade the private and cooperative sectors to take greater initiatives in the promotion and development of housing through fiscal concessions and other incentives. Though the move towards disassociation of governmental agencies from direct construction is being witnessed since the early 70s, the NH&HP calls for a continued positive role by the Government in housing of the poor. Rapid growth of population and increased urbanization on one and and escalating land prices on the other are responsible for widening the gap between demand for and supply of housing units. These factors squeeze the poor off land and marginalize them in urban housing markets. Recognizing this, the NH&HP suggests a number of areas of intervention for governmental agencies to promote affordable housing for the poor, including availability of sites, housing loans at below-market rates, low-cost building materials and civic services. The broad aims of the National Habitat and Housing Policy-1998 (NH&HP) are: ? Creation of surpluses in housing stock either on rental or ownership basis; ? Providing quality and cost-effective housing and shelter options to the citizens, especially the vulnerable groups and the poor; ?
Guiding urban and rural settlements to ensure planned and balanced growth and a healthy environment; Making urban transport as an integral part of the urban Master Plan; ? Using the housing sector to generate more employment and to achieve skill up gradation in housing and building activities; ? Promoting accessibility of dwelling units to basic facilities like sanitation and drinking water; ? Removing legal, financial and administrative barriers for accessing land, finance and technology for housing; ? Forging strong partnerships between private, public and co-operative sectors in housing and habitat projects. B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 25
The NH&HP envisages a key role for the Government of India in promoting policy and legal reforms, facilitating flow of resources to housing and infrastructure through measures such as fiscal concessions to investors and promoting the creation of a secondary mortgage market. The State Governments are expected to gradually withdraw from direct construction of houses, liberalize legal and regulatory regime to give a boost to housing and support infrastructure, promote private sector and cooperatives, and facilitate access of the poor to land, finance, low-cost and locallysuited engineering solutions and participatory designs. Two Million Housing
Programme: The National Agenda for Governance–the election manifesto of the present Government recognizes Housing for All as a national priority. It has set a target for the construction of 2 million additional houses every year – 0. 7 million in urban areas and 1. 3 million in rural areas. A programme of this magnitude is expected to result in an investment of about Rs. 80 billion in housing construction activity. This would also facilitate cement, steel and other building materials industries in addition to creating substantial employment in this sector. Every million of rupees spent by the construction industry generates about 75 man-years of employment. RECENT BUDGETARY INITIATIVES In recent years, housing and construction have emerged as ? top priority‘ sectors for policy-makers.
Faced with recession and slow-down of economic activities, the Government of India has realized the key role that construction Industry can play in jump-starting the economy and provide gainful employment to people. Housing construction has many forward and backward linkages and about 280 industries are directly or indirectly linked to housing activities. Moreover, construction is the second largest employment-generating sector in the country, next only to agriculture. Considering these, the Union Budgets of 1998-99 and 1999-2000 have laid a great deal of emphasis on creating an enabling environment for housing activities in the country through the private sector. The measures initiated by the Union Budgets to boost up housing activities include: ?
Additional equity support to HUDCO to the tune of Rs. 1. 92 billion in the 199899 budget and Rs. 2. 71 billion in the 1999-2000 budget of the Ministry of Urban Affairs and Employment and Rs. 0. 5 billion in the1998-99 budget of the Ministry of Rural Affairs and Employment. These measures augmented the equity base of HUDCO by Rs. 5. 13 billion in a period of just two years as against the infusion of Rs. 3. 85 billion by the Government of India over a period of 27 years from the creation of HUDCO. The addition of Rs. 5. 13 billion of equity would enable HUDCO to leverage about Rs. 42 billion from the market for housing and urban infrastructure activities.
HUDCO would be in a position to support the creation of 1. 5 million houses each year out of which 1 million will be towards achieving the target under the Two Million Housing Programme; B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 26 ? Extension of tax holidays for approved housing projects allowing a deduction of 100% of the profits for the first five assessment years and 30% deduction for another five years. This was made applicable to housing units upto 1500 sq. ft. in the budget of 1999-2000. The facility will promote private sector participation in housing activities; ? ? Increase in deduction against income from house property for repairs and th th ollection charges from 1/5 to 1/4 and increase in the deduction for interest on borrowed capital in the case of self-occupied property from Rs. 15,000 to Rs. 30,000 in 1998-99 budget. The latter figure was revised drastically to Rs. 75,000 in the budget of 1999-2000. This will promote better maintenance of constructed housing stock in addition to promoting larger individual investments in housing; ? Enhancement in the percentage of incremental deposits into housing activities from the banking sector from 1. 5% to 3% to enable inflow of Rs. 3. 8 billion for low-cost housing; ? Inclusion of micro-credit and tiny sector as part of priority sector lending of banks to give a fillip to weaker section/low-income housing; ?
Extension of depreciation benefits in corporate employees housing from 20% to 40% to encourage corporate houses to take up housing for their employees; ? Repeal of the Urban Land Ceiling and Regulation Act in 1998 to free the supply of land for housing in urban areas, especially metropolitan cities. B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 27 FUTURE PROSPECTIVE OF NATIONAL HOUSING POLICY Although the National Housing and Habitat Policy emphasizes the facilitating role of the Government in housing, the public sector agencies are not absolved of the responsibility of providing housing to those segments of the people who cannot be served by the market.
However, a new approach is called for issues such as beneficiary consultations on the location, design and cost aspects of shelter, affordable shelter options for the very poor, integration of income generation and housing, eligibility criteria for availing housing finance and providing a collateral for the same, easier availability of plots and houses from public and private providers, assistance for house construction, speedy approvals for construction of infrastructural services, simplification of documentation and procedures, etc. Housing subsidies often benefit the salaried employees of the organized sector including the Government and the recipients of tax concessions for housing investment.
Implicit subsidies to beneficiaries of social housing schemes arise from loan waivers, low cost recovery rate, concessional interest and inefficiencies absorbed by the agencies. The schemes involving a combination of concessional loan and subsidy affect the extension of viable finance on non-subsidized terms, based on rigorously enforced cost recovery. These issues need to be re-examined. Part of the resources needed for the shelter of the urban poor could be diverted from current outlays by an objective review of all subsidies and mis-applied resources, and by channeling institutional finance. Additional resource mobilization could be by a combination of measures to activate beneficiary savings and channeling loans on viable terms by financial institutions.
These measures could be catalyzed and leveraged by budget provisions for land and services, equity for housing agencies and support to open market lending on credit-rated terms. Steps are needed for avoiding the dispensation of ex-post and implicit subsidies, to provide for transparent and well-targeted subsidies, and to prevent the leakages of subsidies under government programmes and unwarranted fiscal concessions to better-off sections. Subsidies may perhaps be administered in the form of subventions through credible NGOs for group shelter activity and savings effort. The State governments need to adopt a state-wide policy on the regularization of tenure and conferment of leasehold or occupancy rights to slum-dwellers at least in areas not needed by public agencies.
The National Housing and Habitat Policy emphasize the grant of occupancy rights to slum-dwellers and providing support for progressive slum redevelopment and up gradation schemes. The slums and squatter settlements could be categorized as those needing urgent relocation, those that can be considered for conferment of occupancy rights/title and up gradation or redevelopment in situ, and those which can be provided with basic services without conferment of title. This categorization process should be dovetailed with the process of Master Plan revision and formulation of flexible development planning norms. It would enable the relocation of slum-dwellers and change in land use plans to incorporate the regularized slums into the plan-scope of the city.
Also, physical and social planning should be on city-wide basis so as to integrate the informal sector in the city’s economy and social life. The State and city agencies need to be shelter up gradation and extension including toilets, renewal of congested inner city B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 28 crawls, serviced sites for the poor, in situ redevelopment of slums with assistance of the private sector and co-operative involvement, night-shelter and sanitation facilities for the new migrant landless persons, relocation of families from sites urgently required for public purposes, and financial and technical assistance on a group or individual basis for incremental construction.
In order to facilitate greater private and co-operative sector participation in housing activity, as well as public-private partnership, there is the need to: first, undertake legal reforms; second, to undertake land policy reform to provide easier access to developed land; third, provide suitable fiscal measures and incentives to encourage investment of household savings in home ownership and to induce the corporate sector to invest in employee housing; fourth, carefully assign property rights and make them legally enforceable; fifth, create enabling institutions for providing an enabling environment by restructuring existing institutions and by creating new ones, if required; and sixth, widen the existing database for strategic planning to cover aspects relating to ownership of land and property, housing starts and completions, etc.
With the Union Budgets for 1998-1999 and 1999-2000 according a new thrust to housing in the National Agenda for Governance, the Central and State Governments have initiated a reform agenda for housing sector reforms. The reform areas include the following: ? Public-Private Partnerships to ensure a fair return on investment to the private land owners/developers through guided development and availability of serviced sites for allotment to low income families at affordable prices. Fiscal incentives and provision of infrastructure can induce private sector entrepreneurs to housing including that for the poor; ? Measures to control the continuing spiral of land prices, speculation, shortage of developed land, and increasing pace of unregulated and environmentally damaging land development; ?
Increased availability of developed land through measures such as reservation of 5% of the land in larger layouts as land bank for economically weaker sections and low-income groups, land pooling, land readjustment, etc. , steep vacant land tax, etc. ; ? Restructuring of Housing Finance Institutions (HFIs) to meet the housing finance needs of the formal sector as well as the poor and the informal sector. A revision of current eligibility norms that inhibit the flow of a significant proportion of funds from the formal sector to the poorer sections of the population is called for; ? Establishment of linkage with informal credit systems along with grant of security of tenure to slum-dwellers and reforms related to land title, building regulations, etc. with a view to assisting the poor with access to institutional finance for housing; Community resource mobilization through schemes such as Insurance-Linked Savings-cum-Loan-cum-Subsidy scheme for shelter for the poor engaged in B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 29 encouraged to formulate city plans for developing varied shelter options for the urban poor, such as the provision of essential services, ? informal sector activities. Under the scheme for a nominal one-time premium of Rs. 150 per house, the houses are insured for Rs. 25,000 against damages due to fire, lightning, flood, storms, tempests, cyclones, etc. ; ? Increased involvement of NGOs/CBOs/Cooperatives to promote self-help, mutual-help, thrift and credit, self-management, community empowerment, etc.
There is a need for shifting to community-based non-subsidised loan mechanism, as Adopted by Self Employed Women‘s Association (SEWA) in Gujarat State, targeted at poor and sustained by beneficiary savings for shelter and group guarantee; ? Promotion of high density housing in selected areas in cities through appropriate amendments to zoning and land use regulations to obviate the necessity of costly land acquisition and to avoid high infrastructure costs; ? Adoption of small lot zoning in parts of large lot layouts making it mandatory on the part of developers to divide part of the lands being developed into small plots to make them available to poor beneficiaries; ?
Promotion of rental housing through the balancing of landowner and tenant interest so that supply of rental housing at affordable rents is ensured and there is an incentive for people to build houses for themselves and for others; ? Propagation of cost-effective and eco-friendly building materials and technologies and up-scaling of innovative products to make them marketable and amenable for mass application; ? Municipalisation of programmes of poverty alleviation and slum-up gradation in urban areas to make elected Municipalities responsible for these functions and mobilize local support and effort. B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 30 PROBLEMS OF HOUSING SOCIETY (a) Scarcity of land:
In Asia, the rate of urban growth has led to an increase in the construction activities and real estate which is as high as 42% of GDP as compared to12% in Australia. As of December 2002, there were approximately 710 million homeless people in India. And at the end of 8 th 5 year plan there will be a housing shortage or 3. 5 crores houses. This is also because of tremendous growth in population and contribution of joint family making requirement of separate houses for each nuclear family. (b) Inadequate finance: In the measure metros, housing finance cooperatives are offering loans at very competitive rates. However in semi urban and rural areas, there is no institutional finance available for building houses.
The housing urban developmental cooperative (HUDCO) has launched retail finance for rural and semi urban areas and under them NIWAS scheme sanctioned over 1500 crores and build over 1 million houses as on dec 2004. (c) Malpractices of builders: The allotment of land is subject to bureaucratic delays, competition and political influence. Further the cost of the land especially in a city like MUMBAI is highly speculative and is on this increased cost to the members making the real estate a distant dream for a common man. They also use substandard products like steel and cement and the quality of construction also suffers. (d) Disinterested members : In the busy city like Mumbai, both husband and wife is working having a very hectic work schedule. They are already under pressure of managing there households and careers.
They do not have time to socialize and neither contributes proactively for the development of housing cooperative. (e) The office bearers are poorly paid: Most of the staff of housing cooperative is either retired people or people who have taken VRS and are compensated very poorly for services they B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 31 offer. The young blood is missing in management of cooperative as they do not pay handsome salaries. Remedial measures to solve the problems Following remedies are suggested for solving the problems of co-operative housing societies: 1. ) Supplying materials on priority basis:
The building material should be provided on priority basis. There should be a quota of this material to apex co-operative housing society. The registrar of the society should have control on the quota allotted to co-operative housing society. 2. ) Allocate land on priority: Government should give preference to co-operative housing societies while allocating land as to start the work by the societies or otherwise whose existence is only on paper. 3. ) Bye-laws:There are no systematic bye-laws of co-operative housing societies in the country. All co-operative housing societies should adopt model byelaws suggested by the committee appointed under the president-ship of S. T. Raja.
Thereby, the registrar of societies can have control over the working of their societies. 4. ) Financial assistance:Agencies like LIC, HUDCO etc. should provide housing loans at concessional rates. Government should try to make housing societies more strong. Government should establish central housing finance institute to provide finance to apex housing societies. 5. ) Tax concessions:The houses build by co-operative housing societies should get concession in taxes and certain incentives should be given. 6. ) Membership to houseless people:The membership of the housing society should be given only to the people who have no house. B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 32
Procedure for Registration of cooperative Society On receiving such applications the Asst. Registrar through his subordinate will conduct an inquiry to find out the feasibility and economic viability of the proposed Cooperative Society and whether its proposed bye laws conforms to the Meghalaya Coop. Acts and Rules. In case a proposed Cooperative Society is either a, Fishery, / Dairy/, Poultry/, Piggery/or Handloom etc. , views and comments from concerned department has to be obtained before registration of such society. After inquiry report with views and comments from concerned Department are found favorable, Permission is given to complete the necessary formalities for Registration.
A date will be fixed for holding the inaugural general meeting of the promoter in which members will finally decide on adoption of the Bye-Laws and matters concerning with day-to-day functioning of the Society including constitution of Managing Committee, operation of Bank Account etc. In the inaugural General Meeting, one of the Promoters presided over the meeting. An officer from the Department is deputed to attend the meeting and help the promoters in organizational matters. In this meeting they will decide what type of a Society they want to form, how many persons would join as members of the Society ,l elect the office bearers of the society and decide the authorized share capital and the share capital to be contributed by each members.
All the papers duly signed by the Promoters are to be submitted to Asstt. Registrar of Coop. Societies who after satisfying himself on all points, register the society and its Bye-laws. The certificate of Registration in the form set forth and the schedule is issued by Asstt. Registrar of Coop. Societies after registration of the society. A copy of B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 33 registration with Bye-laws is sent to the applicant and also to concerned Departments. 1) Registration of Co-operative societies ? A co-operative society can be registered in Maharashtra State with the Registrar ? ? ? ? ? ? ? ? of Co-operative Societies.
Any person competent to contract, as per the Indian contract Act, 1872 can join in the formation of a co-operative. A group of ten persons, who reside in the area of operation of the proposed society and are from different families, can join in application for registration of a society. A society with the objects of promoting the economic interests or the general welfare of the members only can be registered. No society which is contrary to the policy directives of the State can be registered. Registration can be obtained from the registrar on filling up the application form with the necessary fees and the bye-laws. Division/Amalgamation/Transfer and conversion of a co-operative is allowed.
A Co-operative Society can enter into collaboration with any Government Undertaking or any other undertaking with the prior permission of the State Government for business. It can also enter into a partnership with other co-operatives. 2) Certificate of incorporation as evidence A certificate of incorporation under this Act shall be conclusive evidence that all the requirements of this Act in respect of registration and matters precedent or incidental thereto have been complied with: Provided that nothing in this section shall affect any provision of this Act relating to the winding up or dissolution of the society or the cancellation of its registration. 3) Classification of Housing Co-operatives a) Tenant Ownership: In the case where the land is owned by the Society and the structure on the plot is owned by the members. Individual members are allotted plots by the co-operative to construct their houses. The society creates infrastructure and may also arrange the finance for the members. B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 34 (b) Tenant Co-partnership: The land and the constructed structure is owned by the society and the members who are allotted the flats have the easement rights. (c) Builder Co-operative: where the builder floats a housing scheme and sells the flats. The buyers of the flats then organize into a housing society. Such societies are merely service societies or maintenance societies. d) Ownership cooperative: – In this case, people working in an organization come together and form them into a housing cooperative society. They get their society register, apply to MAHADA. (MAHARASHTRA HOUSING AND DEVELOPMENT AUTHORITY) and get a plot allotted to them in LIG, MIG, and HIG i. e. : low income group, middle income group, high income group. Once the plot is sanctioned they approach a construction company and depending on their budget build up housing society. E. g. : Gulmohar cooperative housing society situated at Ceissor road, Andheri (west) is the housing complex of the ICICI officers. 4) Terms and Conditions to be complied with for admission to membership 1. No person shall be admitted as member of a co-operative society unless- he has applied in writing in the form laid down by the co-operative society or in the form specified by the Registrar, if any, for membership along with a declaration . on oath that he is-net 9 member of any other co-operative society having similar objects; ? his application is approved by the committee of the co-operative society in pursuance of the powers conferred on it in that behalf and subject to such resolution as the general body may in pursuance of the powers conferred on it in that behalf from time to time pass, and in the case of nominal, associate, or sympathizer member by an officer of the society authorised in that behalf by the committee. ? he has fulfilled all other conditions laid down in the Act, the Rules and the Bye-laws; B. C. C. A INSTITUTE OF MANAGEMENT STUDIES
CO-OPERATIVE HOUSING SOCIETY 35 ? in case of a firm, company or body corporate, society registered under the societies Registration Act, 1860, a public trust registered under any law for the time being in force relating to registration of public trust or a local authority, the application for membership is accompanied by a resolution authorizing it to apply for such membership, and the sanction of the Lt. Governor has been accorded. ? in case of a Cooperative Housing Society, he has been a resident of the National Capital Territory of Delhi-for a minimum period of three years at the time of applying for a membership in such society. 2. In case of vacancy n a housing society including group housing society where layout and building plans have been approved by the competent authority, the same shall be filled by the committee by notifying It in leading daily newspaper of Delhi in Hindi and English. In case the number of applications is more than the notified vacancies the membership shall be finalized through draw of lot in the presence of authorised representative of the Registrar. 5) Management of a cooperative society As per the Bye-law, there will be a Committee of Management, initially nominated by the Registrar of Cooperative Societies for a period not exceeding 3 years and subsequently elected by the General Body once every 3 years.
Among the members of the Committee of Management there shall be office-bearers like President, Vice-President, Secretary, Treasurer etc. It will be the responsibility of this Committee of Management to carry on the executive management of the society in accordance with the provisions of the Act, Rules and Bye-laws and as per the annual budget and programme of action approved by the General Body each year. ? The final authority of the Society vests in the General Body of the Society comprising of all the members. ? Every Society shall call Annual General Meeting within a period of three months after the date fixed for completing or drawing up of its accounts for the year. At every Annual General meeting, the Managing Committee shall lay a statement of loans given to the members of the Managing Committee and their family members, Income and Expenditure Account, Balance Sheet, a Report by the Managing Committee regarding the Society‘s affairs. Failure to do so may attract the disqualification of the members of the Managing Committee and other penalties. B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 36 ? A Special General Meeting can be called by the Chairman of the Co-operative or by majority of the members of the Managing Committee. Members too can requisition for such a meeting if 1/5 th of the total members of the Society endorse this requisition.. The Registrar also has the powers to call for a Special General meeting. So can the committee of the Federal Society do so.
Failure to call for this meeting may attract penalty for the Managing Committee. ? It is the duty of every Managing Committee to arrange for holding of elections of its members before the expiry of its term. Election to a Specified Society shall be conducted by the Collector and that of a Notified Society by the Registrar. ? Management of the Society vests in a duly constituted Managing Committee. ? Reservation for the weaker section, women and scheduled castes/tribes has been provided in the Managing Committee. ? No committee is duly constituted unless the Registrar publishes the names of the members of the Managing Committee along with their addresses. If a Managing Committee of a Society is not duly constituted, an Administrator may be appointed by the Registrar. ? An Administrator can also be appointed (for a period of six months) by the Registrar if the Managing Committee is removed for negligent performance as per the provisions of Co-operative Law. A member of the Managing committee can also be removed by the Registrar for negligent performance. ? The Managing committee can appeal against its removal / dismissal. ? Office bearers of a Society can be removed by the way of No confidence motion. Such a no confidence motion has to be supported by at least onethird of the members of the managing Committee.
Removal from office is effected only after the resolution is passed by a simple majority in the Managing Committee. 6) Members of societies 1. ) The members of a society which is formed under this Act shall be the persons who sign the application for membership on the formation of the society, and any other persons who are admitted to membership in accordance with this Act and the rules of the society. B. C. C. A INSTITUTE OF MANAGEMENT STUDIES CO-OPERATIVE HOUSING SOCIETY 37
